News

Main purpose and benefits

A private company is in essence a company whose shares are privately held by, for example, the company’s founders, a group of private investors or a subsidiary of a larger company. The main advantage is that the sale of shares is restricted and the shares cannot be offered to the public thereby protecting the shareholders’ interests.

The word Chairman is derived from the words "chair" and the Latin word "manus" meaning hand. The picture of a chief sitting in the chair and wielding a staff comes to mind. Much has changed and the chairman of today has to take into account the softer issues as well as the hard business issues.

In our recent director survey, a number of directors pointed out some guidelines:

Once your company has been registered, your next logical step would be to hold your first board meeting. Put your best foot forward by drawing up an agenda to deal with the most critical matters. By doing so, you will save yourself the frustration of numerous written resolutions:

Agreement has been reached between CIPC and the Banking Association of South Africa (BASA) that banks will no longer require a barcoded short/standard Memorandum of Incorporation to be submitted together with an application for the opening of a business banking account.

The Companies and Intellectual Property Commission (CIPC) would like to accommodate customers in submitting the annual returns later than what the Acts require due to the system developments. The CIPC is waiving the late filing fee and penalties for annual returns on both companies and close corporations.